Clinical Staffing Services Procurement Intelligence: Key Factors to Consider

The clinical staffing services category is anticipated to grow at a CAGR of 6.4% from 2023 to 2030. Given the growing need for healthcare professionals, it is now more essential than ever for healthcare organizations to collaborate with dependable staffing agencies. This partnership ensures that they can adequately fulfill the requirements of the patients. With the healthcare landscape constantly evolving, it is crucial to remain up to date with current staffing trends and best practices. Medical groups are using financial incentives to boost their workforce as staffing shortages continue to be a challenge. According to Urology Times’ June 2023 report, in comparison to the previous year, there has been an increase in the adoption of various incentives within medical groups. Referral bonuses are now being offered by 88.2% of these groups, as opposed to 82.8% in 2022. Additionally, sign-on bonuses have seen a rise, with 77.6% of medical groups providing them, compared to 69% in the previous year. Moreover, 55.7% of medical groups are implementing benefit changes, a notable increase from 41.1% in 2022.

The future of healthcare staffing is being significantly influenced by technology. With the progress made in AI, machine learning, and automation, employers now can utilize technology for optimizing their recruitment procedures and improving their hiring choices. AI is being used to streamline the clinical staffing process by using AI-powered algorithms which can analyze large datasets of candidate profiles and match them with the most suitable job openings based on skills, qualifications, and experience. This can significantly speed up the recruitment process and improve the quality of candidate matches.

For instance, in October 2022 Abra, a healthcare technology provider, launched a platform for the healthcare IT ecosystem to automate the process of talent matching with the appropriate job. The app brings together diverse sources of health IT professionals, such as independent contractors, consulting firm pools, and other application teams. Through the utilization of AI and machine learning, Abra connects these talents with health systems, simultaneously enhancing transparency throughout the hiring process.

Order your copy of the Clinical Staffing Services Procurement Intelligence Report, 2023 – 2030,  published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The utilization of technology in healthcare staffing offers several key advantages. One primary benefit is the capacity to access a broader array of candidates. Digital tools like online job boards, social media platforms, and applicant tracking systems play a pivotal role in expanding employers' reach and attracting highly skilled professionals. Such solutions enable swift and efficient posting of job openings and screening of resumes.

Furthermore, technology in healthcare staffing brings the advantage of task automation. Tasks such as resume screening and interview scheduling can be automated, leading to significant time and resource savings in the recruitment process. Consequently, employers can divert their attention to more strategic endeavors. 

Healthcare facilities, such as hospitals and clinics, are the primary buyers of clinical staffing services. These buyers usually have moderate to high bargaining power, as they can switch between staffing agencies or negotiate pricing and terms. The quality of service, expertise of staff, and ability to meet staffing needs promptly can influence bargaining power.

Bill rate, taxes, insurance, recruitment, advertising, training & orientation, office space, and building rents are some of the cost components incurred in the clinical staffing services category. Bill rate generally includes salary and wages directly to the workers. Salary and wages account for the majority of the cost component ranging from 50 - 60% of the total cost for the service provider. Recruitment costs may range from around 15 - 25% of the employee's first salary. As reported by AGMA 2023 in the clinical staffing survey report, there was a 10% increase in staffing costs as compared to 2022.

Additionally, markup is the percentage of the pay rate charged by the service-providing firm. The markup applied by staffing agencies for temporary employees or independent contractors can vary from 20% to 75%. For permanent placements, the markups are generally in the range of 10% to 20% of the employee's gross annual salary.

Finding skilled medical staff is the most challenging and crucial part. Healthcare facilities generally find it difficult to find suitable talent for positions. Hence, they usually look to outsource their staff process to medical staffing agencies. These agencies possess a wide range of candidates from diverse medical backgrounds and experiences, encompassing nurses, doctors, therapists, technicians, and administrative personnel. Leveraging their expertise, these agencies skillfully match candidates to meet the specific requirements of healthcare facilities, ensuring they possess the necessary qualifications, licenses, and certifications.

By collaborating with medical staffing agencies, healthcare facilities can anticipate a streamlined recruitment process. The agencies take charge of all administrative tasks, such as advertising the job, evaluating resumes, conducting interviews, and validating credentials. As a result, healthcare facilities can save valuable time and money, enabling them to concentrate more effectively on their core operations. 

Clinical Staffing Services Procurement Intelligence Report Scope

• Clinical Staffing Services Category Growth Rate: CAGR of 6.4% from 2023 to 2030

• Pricing growth Outlook: 7 - 8% (annual)

• Pricing Models: Full-Service Pricing, Price for services offered, Competition based pricing

• Supplier Selection Scope: End-to-end service, cost and pricing, services offered, service reliability, and scalability

• Supplier selection criteria: Credentials and accreditation, experience and track record, Staff quality, agency background check, types of services offered, and end-to-end services

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Browse through Grand View Research’s collection of procurement intelligence studies:

• Clinical Trial Imaging Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Healthcare Consulting Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Key companies profiled

• CHG Management Inc.

• MedSmart Inc.

• AMN Healthcare

• Aya Healthcare

• HealthTrust

• Axis Medical Staffing

• Maxim Staffing

• Cross Country Healthcare

• Jackson Healthcare

• Favorite Healthcare Staffing